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Question - On December 31, Baker Company had an ending inventory of $80,800 based primarily on a physical count at its warehouse. In computing the final balance of Inventory, the following information was available:
(a) Inventory items with a cost of $2,380 were excluded from ending inventory. These goods were on consignment from Peterson Company and had not yet been sold on December 31.
(b) Inventory items with a cost of $2,830 were included in ending inventory. These goods were in transit from Griffin Company to Baker Company and were purchased FOB shipping point.
(c) Inventory items with a cost of $3,470 were included in ending inventory. These goods were in transit from Bryant Company to Baker Company and were purchased FOB destination.
Required - Using the information given above, compute the correct final balance of Inventory.
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